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Strong 10 Year Auction Breaks Treasury Gloom As Foreign Central Banks Come Rushing In
Following yesterday's abysmal 3 Year auction, many rates investors were on edge ahead of today's 10 Year auction in the aftermath of the weakness across the curve seen since the "stellar" jobs report which had dragged yields higher across the curve. It turned out fears were premature, and moments ago the $24 billion reopening of 10 Years priced at a yield of 2.304%, which while highest since June, priced 0.8bps through the When Issued showing surprising demand for paper.
Also, unlike yesterday, the Bid to Cover did not tumble and instead was virtually unchanged from last month's 2.59, dipping fractionally to just 2.58%, in line with the TTM average of 2.65%.
Finally, the internals showed that just like yesterday Direct interest picked up, with 14.3% of the auction taken down by Direct Dealers, most since May, and 60.5% going to Indirects, which aside from October's 62.2% was the highest since December 11. This left just 25.2% for Dealers whose take down was the lowest since May.
Overall a very strong auction, and one which showed that rumors of the death of the Treasury market are once again premature.
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Who would have ever thought that the entire intertwined parastic and corrupt system of banking and government is 100% dependent on the varied central banks in each country creating money out of thin air and loaning it to the governments of other countries.
It is a big corrupt and parasitic circle jerk. That is all. Without Japan and Brussels, Obama and the congress critters couldn't write checks, oppress the people and murder babies in foreign countries.
Japan and Brussels are the Fed. No circle jerk, just one head of the global ponzi. Geographic borders in the financial world mean nothing.
Exactly. Not to complain, but what is the point of these "auction" posts? They are meaningless.
Tyler?
Round-Robin stick-save buying.
One huge central bankster circle-jerk.
Anything to save face.
They can't allow a falure now.
Failure to support the WRC would hasten the doom of those parasitic syncophants that profit from its hegemony.
There is little choice for the WRC's adherents and subjugated natioins to select from.
The BRIC nations and their banking system are watching from the sidelines as the snake eats its tail to surivive.....
tic toc
There is no "market"!!!
Don't think beyond that simple truth.
"Run You Fools."~Gandalf Lord of the Rings.